MR JACQUES Santer, president the European Commission, plans call for a sweeping review of EU economic policies in an to revive his flagging initiative on employment.

The move is expected to touch state aid and the liberalisation of tries where little progress has made in creating a single This would include areas such as energy, France has been reluctant to reform.

The review could form a key element of the jobs package which Mr Santer plans to unveil at the heads of state summit in Florence next month.

Mr Santer is likely to be deliberately bold in an attempt to counter impressions that the EU is not capable of dealing with high levels of unemployment. The aim would be to try and create confidence and an environment where investment could take off.

Another area of action being considered is a drive to persuade governments to make a firm pledge to implement all single market legislation. Figures published yesterday show that on average across the union only 90 per cent of single market legislation has been written into national statute books. The proportion that has been implemented is significantly lower. One possibility is that member states be given six months to complete the process.

The proposals on liberalisation are due to be presented to the Commission on June 5th. They could provoke fierce resistance in some member states. French and German officials are due to discuss the energy issue at a special meeting early next month.